| Tekijä: | Grossmann, V. |
| Otsikko: | Skilled labor reallocation, wage inequality, and unskilled unemployment |
| Lehti: | Journal of Institutional and Theoretical Economics
2000 : SEP, VOL. 156:3, p. 473-500 |
| Asiasana: | PAY INEQUALITY LABOUR |
| Kieli: | eng |
| Tiivistelmä: | This paper analyzes the labor market effects of an increase in incentives in raising total factor productivity and, thus, reallocating high-skilled labor from production to non-production (i.e. R&D) activities. Within an endogenous growth framework, it is shown that such a reallocation of skilled labor depresses the demand for low-skilled labor. Contrary to the standard view of skill-biased technological change, the relative marginal productivity of labor changes only because of relative employment effects. |
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